Broking is a unique business because there’s a hard ceiling on how much we can grow and the rate at which we can grow. What most people don’t realise is that SEBI has set a 15% open interest (OI) cap at the broker level.

No single broker can hold more than 15% of the total market OI. This restriction exists to mitigate the risk of concentration from any single broker becoming too large. Concentration is beneficial for business but ultimately detrimental to consumers.

This is similar to the 33% market share restriction that NPCI imposed on third-party UPI apps. That measure was never implemented because it would’ve meant UPI apps stopping transactions, but in our case, the limit is applicable.

For us to grow, the overall market must grow, and that means other brokers must also do well. Although we have been at nearly 15% of OI for the last five years, fortunately, the overall market has grown, and we’ve benefited.

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